A recent wheat-processing project by Singaporean agribusiness group Wilmar International Limited in Henan province has stirred fears that foreign giants are threatening China’s grain and oil enterprises, a report by China Economic Weekly said.
This project, which includes wheat processing plants as well as railway and warehouse construction for wheat products, is in Zhengzhou, capital of Henan province. This move marks the group has further completed its grain industry chain in the province known for agricultural production.
Yang Peigan, chairman of a cereal and oil company in Henan, said the province's wheat processing companies are small and scattered, hardly a competitor for international groups.
"China's capacity for grain production and consumption are major attractions for foreign companies," analyzed Yang Zhengsheng, a researcher with the Henan provincial government, "they penetrate into all sectors in the industry chain with the aim of having a say in the pricing system."